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Everything else seems to work just fine but animations and anything that is suppose to move flicker like crazy. Forcing vsync via ccc didn't help.

win 7, 64bit

Also is there a way to play in windowed?

EDIT: Now the game just crashes after few seconds of play. My fps is around 10-12.
Post edited January 26, 2014 by illuknisaa
This question / problem has been solved by DeMignonimage
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illuknisaa: ... Now the game just crashes after few seconds of play. My fps is around 10-12.
The game has some DirectDraw issues on newer Windows versions. It might be worth a try, using a DirectDraw wrapper, that fixes some problems.
E.g. this one http://bitpatch.com/downloads/ddwrapper.zip

Extract aqrit.cfg and ddraw.dll to the "Game" directory of Desperados (e.g. C:\GOG-Games\Desperados Wanted Dead or Alive\Game).
From now on Desperados uses this ddraw.dll (the wrapper) to handle graphics, instead of the original DirectX version. The wrapper offers further configuration, before handing over the commands to DirectX. All options are set in aqrit.cfg. You can open this file with any text editor.

I'd try the wrapper out of the box and if it doesn't work open aqrit.cfg and set
ForceDirectDrawEmulation = 1

You'll probably loose hardware acceleration, but that shouldn't be a big problem with Desperados.
Post edited January 26, 2014 by DeMignon
Ty that seemed to solve the issue. Now the game only crashes every 5 minutes.
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illuknisaa: Ty that seemed to solve the issue. Now the game only crashes every 5 minutes.
Have you tried running it in compatibility mode for Windows XP, yet? (right-click => Properties =>Compatibility tab)